Press Release

VIS Upgrades Broker Management Rating of Adam Securities Limited

Karachi, February 7, 2022: VIS Credit Rating Company Ltd. (VIS) has upgraded Broker Management Rating of Adam Securities Limited (ASL) to ‘BMR2+’ from ‘BMR2’. Outlook on the assigned rating is ‘Stable’. Previous rating action was announced on January 18, 2021.

The rating signifies strong external control framework. Client services, internal controls, risk management, and financial management are sound, while supervisory framework and HR & infrastructure are adequate.

Rating upgrade takes into account increase in Board size and inclusion of independent representation on the Board, which is expected to enhance supervisory framework. Addition of Risk Management committee at the Board level has been noted positively. External control framework has been strengthened with the appointment of ‘A’ rated auditors on the panel and adequate disclosure levels. Rating also takes note of revisions made in internal policies to enhance their scope and comprehensiveness. Client services are sound, however, increasing the scope and reach of the research function may further enhance client relationships and increase customer base. The rating also takes note of an improved compliance and risk management framework. Moreover, defined credit policy has also been formulated by the management.

Assessment of financial profile indicates growth in profitability in FY21 and 1HFY22, on the back of higher operating revenues as well as consistent capital gains. A large proprietary book exposes the Company to higher market risk. Liquidity remains sound. Capitalization indicators remain sound with increase in equity base along with manageable gearing and leverage levels. Continued growth in brokerage revenues, augmentation of revenue streams along with improvement in operational efficiencies and market risk exposures will be important for rating, going forward.

For further information on this rating announcement, please contact Ms. Sara Ahmed (Ext: 207) or the undersigned (Ext: 201) at (021) 35311861-66 or email at info@vis.com.pk



Javed Callea
Advisor

Applicable Rating Criteria: Broker Management Ratings 2020
https://docs.vis.com.pk/docs/BMR202007.pdf

Information herein was obtained from sources believed to be accurate and reliable; however, VIS Credit Rating Company Limited (VIS) does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. VIS, the analysts involved in the rating process and members of its rating committee do not have any conflict of interest relating to the rating(s)/ranking(s) mentioned in this report. VIS is paid a fee for most rating assignments. This rating/ranking is an opinion and is not a recommendation to buy or sell any securities. Copyright February 07, 2022 VIS Credit Rating Company Limited. All rights reserved. Contents may be used by news media with credit to VIS.